Tuesday, July 20, 2010

Currently,the unit selling price of a product is $280, the unit variable cost is $230, and the total fixed costs are $525,000

ACCOUNTING
Warren, Reeve and Duchac

Financial Accounting
Managerial Accounting
Carl Warren, James M. Reeve, Jonathan E. Duchac

Chapter 21

EX 21-13 Currently,the unit selling price of a product is $280, the unit variable cost is $230, and the total fixed costs are $525,000. A proposal is being evaluated to increase the unit selling price to $300.
a. Compute the current break-even sales (units).
b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant.

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